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Educational Attainment, Growth and Poverty Reduction within the MDG Framework: Simulations and Costing for the Peruvian Case

Author

Listed:
  • Gustavo Yamada
  • Juan F. Castro
  • Arlette Beltran
  • Maria A. Cardenas

Abstract

We propose a model that accounts for the potential feedback between schooling performance, human capital accumulation and long run GDP growth, and links these results with poverty incidence. Our simulation exercise takes into account targets for education indicators and GDP growth itself (as arguments in our planner's loss function) and provides two conclusions: (i) with additional funds which amount to 1 percent of GDP each year, public intervention could, by year 2015, add an extra 0.89 and 1.80 percentage points in terms of long-run GDP growth and permanent reduction in poverty incidence, respectively; and (ii) in order to engineer an intervention in the educational sector so as to transfer households the necessary assets to attain a larger income generation potential in the long run, we need to extend the original set of MDG indicators to account for access to higher educational levels besides primary education.

Suggested Citation

  • Gustavo Yamada & Juan F. Castro & Arlette Beltran & Maria A. Cardenas, 2008. "Educational Attainment, Growth and Poverty Reduction within the MDG Framework: Simulations and Costing for the Peruvian Case," Working Papers MPIA 2008-05, PEP-MPIA.
  • Handle: RePEc:lvl:mpiacr:2008-05
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    References listed on IDEAS

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    1. Gustavo Yamada, 2006. "Retornos a la educación superior en el mercado laboral: ¿Vale la pena el esfuerzo?," Working Papers 06-13, Centro de Investigación, Universidad del Pacífico.
    2. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    3. Francois Bourguignon & Francisco H.G. Ferreira & Nora Lustig, 2005. "The Microeconomics of Income Distribution Dynamics in East Asia and Latin America," World Bank Publications, The World Bank, number 14844.
    4. Gustavo Yamada & Juan Francisco Castro, 2007. "Poverty, inequality, and social policies in Peru: As poor as it gets," Working Papers 07-06, Centro de Investigación, Universidad del Pacífico.
    5. Oscar Dancourt & Félix Jiménez & Waldo Mendoza & Eduardo Morón & Bruno Seminario (ed.), 2004. "Modelo de análisis de políticas macroeconómicas para la economía peruana," Books, Fondo Editorial, Universidad del Pacífico, edition 1, volume 1, number 04-02.
    6. Juan F. Castro & Gustavo Yamada, 2006. "Evaluación de estrategias de desarrollo para alcanzar los objetivos del milenio en América Latina," Working Papers 06-11, Centro de Investigación, Universidad del Pacífico.
    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:

    1. Marouani, Mohamed A. & Nilsson, Björn, 2016. "The labor market effects of skill-biased technological change in Malaysia," Economic Modelling, Elsevier, vol. 57(C), pages 55-75.
    2. Björn Nilsson & Mohamed Ali Marouani, 2015. "The Labor Market Effects of Skillbiased Technilogical Change in Malasya," Working Papers 20150006, Université Paris 1 Panthéon Sorbonne, UMR Développement et Sociétés.

    More about this item

    Keywords

    Millennium development goals; education; human capital; GDP growth; poverty; Peru;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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